Prices tumbled more than 11% in Singapore on signs that authorities in China will intensify efforts to quell a big rally since mid-November. Several iron -companies were reportedly called to a meeting with the economy’s top planning body in Beijing, while the official China Daily newspaper railed against what it called “guerrilla war” by speculators in China and outside.
“The government’s rhetoric on cracking down on iron ore prices is expected to drive trading for the near term as the market awaits more specific measures,” Wei Ying, an analyst with China Industrial Futures, said by phone.
The fresh regulatory attention highlights a difficult balancing act for Beijing, which wants to steady the economy -- boosting steel consumption -- without reprising last year’s damaging bout of commodity inflation. Beijing will focus more on growth and increased infrastructure spending in 2022, according to Mike Henry, CEO of major miner BHP Group.
